Yahoo! is expected to announce a large number of layoffs tomorrow, when it releases its third quarter earnings report. The exact number of job cuts is unknown but layoffs are expected to come from every department of the 14,000-employee company. Sources online suggest that as many as 3,500 staff at Yahoo! could face the axe.
However, Yahoo! is the only technology firm trimming staff to save costs, as many companies across the valley are being warned to get profitable and prepare for the worst.
Iggy Fanlo, chief executive of online advertising network Adbrite told the Financial Times: "It's the need to get profitable immediately. We're heading for tough times."
Adbrite announced last week that 40 of its 100 employees would be made redundant, including two executives.
Zivity, an adult social networking site, announced that one-third of its staff would be cut this week due to the financial crisis.
The story is similar with software firm Jive and video-blogging website Seesmic, which also cut a third of staff this week to save costs.
Hi5, the third-largest social networking website behind Facebook and Myspace, also announced that it is cutting 10%-15% of its work force, mostly in design and human resources.
The Financial Times reports that earlier this month the venture capital firm Sequoia Capital hosted a meeting with the heads of all the internet start-ups it financially backs, beginning with a slideshow showing a gravestone and the words "RIP good times" encouraging them to treat every dollar as if it were their last.
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